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TMI Blog2008 (7) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... t the preventive party of Headquarters, Mysore visited the unit on 5-10-2004 and on verification of the records it was found that the appellants were clearing sugar syrup without discharging duty, therefore, the demands were raised for the period 4-9-2004 to 10-10-2004 for an amount of Rs. 4,92,800/-. In Appeal No. 102/2006, the Commissioner (A) has rejected the appellant s appeal on time-bar. This is also under challenge. 2. The appellant s contention before the authorities was that they had not manufactured sugar syrup falling under Chapter 1702.30. It was stated by them that what they manufactured was only sugar solution out of sugar cane which had short life and not marketable. However, their contention was not accepted. The Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted cane juice and the manufacturing process, the Original Authority concluded that the item is sugar syrup which is devoid of pectin and other substances. It also noted that the same was being sold to another unit for use in manufacture of alcohol and therefore, the item was marketable. It also examined the Board s Circular No. 780/13/2004 CX dated 12-3-2004 wherein it was clarified that if the sugar syrup is marketable as such and taken for captive consumption, then it is excisable. The Board s Circular did not refer to any percentage of sugar concentration. The Original Authority applied the ratio of Supreme Court rendered in the case of Plasmac Machine Manufacturing Co. Pvt. Ltd. v. CCE - 1991 (51) E.L.T. 161 (S.C.) = 1991 (32) ECR (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution will retard the growth of microorganisms. He submitted that the item is not sugar syrup and hence, demand should be set aside. 5. The learned SDR pointed out to the very Circular which clarified that according to IS: 4935-1968 synthetic syrups may be prepared with or without addition of citric acid to sugar syrups and flouring essences. She pointed out that this circular was with regard to the sugar syrup produced at the intermediate stage in the manufacture of aerated water and ayurvedic medicine and the same is not applicable to the facts of the case. She submitted that the issue is no longer res integra and this Bench in the case of CCE, Hyderabad v. Spectra Bottling Co. Ltd. - 2006 (198) E.L.T. 417 (Tri.-Bang.) has already he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents are absent despite several notices issued to them. Hence, the matter was heard on merits. 4. On perusal of the records and from the findings of the original authority, we find that the appellants have been using Citric Acid in the sugar solution. The Chemical Examiner s Report confirms this fact. The appellants had also filed the process of manufacture to the department, wherein they have clearly shown the use of Citric Acid and other chemicals. In view of the Tribunal ruling rendered in the case of Sri Sarvaraya Sugar Ltd. holding the Raw Sugar Syrup containing Citric acid to have shelf life and being dutiable, therefore, the impugned order is not sustainable. The Commissioner (Appeals) has proceeded on the basis or oral subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so relied in the case of Shivambu International v. CCE, Chandigarh-I - 2002 (145) E.L.T. 124 (Tri.-Del.) wherein also matter was remanded for verifying the sugar concentration of 65% by weight or more of sugar, as the same had not been verified. 7. We have carefully considered the submissions and perused the records. As seen from the citations referred to by the learned Counsel, sugar syrup should have sugar content of more than 65% of weight for considering it as a dutiable as held in the case of Himalyan Vegi Fruits Ltd. v. CCE, Chandigarh (supra), CCE, Indore v. Venkatesh Beverages (supra) and Shivambu International v. CCE, Chandigarh (supra), in both these cases, the matter was remanded for de novo to ascertain the percentage of sugar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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